Gramercy Europe has closed its third fund having raised €260 mln of equity commitments in just two months. With leverage of up to 60% loan-to-value, the vehicle will have a spending power of up to €650 mln.
The fund manager, which specialises in logistics as well as manifacturing and industrial transactions, raised the equity exclusively from institutional investors.
‘This new fund will be well placed to benefit from the structural drivers underpinning occupier demand for the logistics and light industrial assets,’ commented Alistair Calvert, CEO of Gramercy Europe. ‘Our mandate closely echoes that of our previous funds but with a widened appetite for shorter leases and more involved asset management needs.’
Gramercy Property Europe III will focus on Continental Europe with a bias towards Germany, France, the Netherlands and Spain. It will source investments through funding build to suit developments, undertaking saleleaseback transactions and acquiring existing leased assets in the logistics and light industrial property sector. It will target a stabilised weighted average lease term of over five years across a portfolio of 30 to 40 high quality industrial assets.
The fund launch comes hard on the heels of Gramercy’s circa €1 bn sale of the entire portfolio of Fund II to AXA Investment Managers – Real Assets, in July this year. The 1.2 million m2 package included 39 predominantly logistics assets and was fully let to 27 tenants with an average lease length in excess of eight years.
Fund II, which raised some €350 mln in 2014, is understood to have delivered an internal rate of return in excess of 35% following the transaction.
Gramercy Europe is a real estate investment fund manager focused on single tenant logistics and light industrial properties located across Europe. It has assets under management exceeding €1 bn. It is wholly owned by US REIT Gramercy Property Trust.
